Explain the nature of the consumer adoption process. How is it different from the concept of diffusion of innovations?
Customer adoption process – contant with a new product is
Awareness (interest is developed & evaluation with other products occurs)-interest-evaluation-trial-adoption-internalization.
The consumer primarily must become aware of the product then become interested.
Then perform some prepurchase evaluation, then try the product, either a s a consequence of a porchase or of a marketer sponsored promotion or incentive.
Two stages follow Trial, 1st consumer must decide to purchase/continue purchasing the product(identified as adoption. internalization is a hard2 discern stage, in which the product has become part of the user’s life style.
-Product with a techonoly component often require a substantial learning process. if it occurs then it can be internalized. It explains the customer’s behavior & how they will adapt to the product.
Diffusion Process: consisted of innovation, comm channels, time, social system within which the innovation is spreading.
the life of a product over time.
Innovators, early adaptors, early majority, late majority, laggards.
Relative advantage: product benefits perceived as superior than existing products
Compatibility: consistency between new product & consumer’s perception.
Complexity: difficult to learn/use. TRiability: new prod can be tried.
Observability/communicability: new product’s benefits are evident.
the degree to which an innovative product or service possesses these characteristics determines the ease with which is adopted and diffused throughout the population. COMPLEXITY CAN RETARD THE DIFFUSION OF AN INNOVATION!!!!!
automobile & phone were slower to diffuse through the pop, unlike newer ones like Interweb & cells, or as the brits call ‘em Mobiles/
· Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the Internet?
Pervasive computing to me is when I can use devices in order to facilitate some task in order for me to function in a more faster and proper way. according to the text it is the result of computing embedded in a variety of devices.
Ive been practicing pervasive computing since I first got my Handspring Prism that a friend gave to me in my teens, I would use it to store data like notes & contact information, as well as maps that i could retrieve when i mostly needed it, today my iphone is the central station and my connection to the world, it has completely internalized itself into my life, & i couldn’t survive without it.
implies that a single person has access to myriad computing devices to assist in performing all sorts of daily tasks. Pervasive computing aims to enable people to increase personal and professional transactions with new intelligent and portable devices. It gives people convenient access to relevant information stored on powerful networks anywhere, anytime. “Smart devices” are embedded with micro-processors that allow users to plug into intelligent networks and gain direct, simple and secure access to both relevant information and services.
Speedpass(rfid based payment system) British airways – mobile services such as flight schedules. Vegas – cell phone payment at parking meter.
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· Be prepared to describe the strategic drivers of wireless adoption and to give an example of each.
context: providing necessary information when and where the customer needs or wants it. (dimensions= localization & Personalization)
localization: the location of the user can be identified and information specific to that location can be provided (beaming of info about atrractions in an area)
personalization: the customer can select not only the type of information desired but also the frequency of information provision. (consumer may want to be notified when certain stocks hit a specific price level)
Time sensitive: information must be provided at the time appropriate to the customer.
When the customer is about to pay they can be contacted at time& place of purchase. coupon)
high value: coupon will have to have reasonable value in order to make it welcome in the wireless context.
voice activation: good for driving, no use of hands.
one-click payment mechanisms: a system is which payment is easily and securely authorized and billed to a single account will be necessary to enable frequent use of m-commerce services (cons will not want to enter data on mobile keyboards, specially for micropaymentss)
security: users must be assured that data transmissions are secure, and authentication services must be provided in a way that is suitable for the devices
privacy: protect personal data( like smart cards)
expanded permission marketing: what kind of information is consumers willing to receive, how often they are willing to receive transmissions, and where they are willing to receive it. Accurate customer database required that is updated in real time.
Remember wireless advertising may be more intrusive, marketers must be vigilant in trying to stop mobile spam!